Golden is a unique place all around, and I’m probably already preaching to the choir with that one! Also unique to Golden are some particulars around some extra air source mini split and duct heat pump rebates, so I wanted to share those with you.
Rebates and incentives for heat pumps can already be confusing enough, but fear not, I’ve include some examples below.
And if you’re looking to get a quote or to replace your old gas-fired boiler, baseboard, or furnace heating and air conditioning system with a new efficient heat pump, feel free to contact us. We’re a licensed heat pump installer in Golden and would love to chat with you about your project.
So without delay, let’s get into it!
What Heat Pump Incentives Are Available In Golden?
The good news is there are many rebates available, ranging from federal tax credits, down to the state and local level.
Compared to other cities Golden has some extra heat pump rebates, along with bonuses for income-qualified homeowners, so be sure to check those out below.
City of Golden Updated Heat Pump Rebates
I was delighted to speak with Theresa Worsham, City of Golden’s Sustainability Manager, about their recently updated heat pump rebates.
Known as Resolution No. 3062, the city has allocated tens of thousands of dollars for not only heat pumps, but many other energy efficiency and green homes rebates as well.
Per their new Resolution, here are the new heat pump rebates available within City of Golden for townhome and single family homeowners. Note the bonuses if you’re an income-qualified resident, which we’ll explain further below the chart.
| Equipment Type | 2024 Rebate | Income-Qualified Rebate |
Air Source Heat Pump, cold climate rated, whole home | $1,200; minimum 3 tons for single-family. No minimum for multi-family. | $2,400 |
Mini Split Air Source Heat pump, cold climate rated | $300, per indoor head, max 3 | $600, maximum 3 |
Ground Source Heat pump, standard efficiency | $300 | $600 |
You’ll notice that if you’re income-qualified, you’ll get double the rebate amount for air source heat pumps and mini splits.
What Qualifies You As Income-Qualified For Double Rebates?
Taken directly from the city’s Sustainability Program Rebates website, Golden states that in order to qualify for income-qualified double rebates, you must meet this criteria:
Owners earning up to 80% of Area Median Income (AMI) annually and includes all adults over 18 living in household. Please see the Jefferson County AMI Income limits on the Guiding Golden or Energy Outreach Colorado.
City of Golden Sustainability Program Rebates
At the time of this writing for Jefferson County, this means that you can qualify for the double rebates if your household income is lower than the following income numbers, which is also dependent on how many people live in your home:
| Number of People In Household | % 80 AMI / Income Threshold |
| 1 | $73,040 |
| 2 | $83,520 |
| 3 | $93,920 |
| 4 | $104,320 |
| 5 | $112,720 |
| 6 | $121,040 |
| 7 | $129,360 |
| 8 | $137,760 |
| Each Additional Person | $8,300 |
Xcel Energy’s Heat Pump Rebate
Xcel Energy has a $1,700 to $2,200 rebate for heat pump installations. You have to meet certain efficiency standards in order to get this. And to qualify for the full $2,200, you must get a cold climate heat pump version (which we always like to install for customers anyway).
Golden now requires that you go with a cold climate heat pump anyway, so it’s a good idea to get that rebate and the extra $500 from Xcel to pay for the slightly higher incremental cost of a cold climate system, in our opinion.
For our altitude and overall climate, cold climate units are much better matched for our homes here, in our opinion.
There is a lot of documentation that we have to submit with this rebate in terms of correct heat pump design, home energy modeling, specific equipment documentation, and more.
We submit it on your behalf and it takes a bit of time. The good news is, these strict requirements mean you get a great cold climate system to heat and cool your home for the next 15-20 years.
You can read more about Xcel’s rebate on their website here.
Colorado State’s Shared Tax Credit
While it’s still a bit convoluted at the moment, this is a total of $1,500, with a minimum $499.95 shared with the homeowner as an up-front invoice-based discount.
The tax credit is then submitted at the end of the year at tax time by the heat pump installation contractor. The equipment standards are similar to Xcel Energy’s in terms of quality and efficiency, so we make sure the heat pump qualifies across all rebates.
Check out more on this tax credit on the official state website here.
Federal IRA Heat Pump Tax Credit
This is another great tax credit, and one you can get every year! It’s specifically for 30% of the project cost up to $2,000 maximum amount for heat pumps.
You have to meet similar strict and verified equipment specifications that are similar to the above. One other thing to watch out for is to know that if you are doing a heat pump water heater and a new heat pump HVAC system at the same time, both of those count towards the same heat pump tax credit.
Some of our customers like doing our heat pump HVAC install the first year, for instance, and then doing the heat pump water heater the next year, or vice versa. This would allow you to get up to $2,000 each year for the projects, and up to $4,000 total.
You can read more about this federal incentive here.
You’ll apply for this at tax time using Form 5695. We provide our customers with everything they need for record-keeping on this one too.
An Example of a Whole-Home Ducted Heat Pump Project in Golden With Rebates
Just for a quick example, let’s assume you need a new 4 ton whole-home ducted cold climate heat pump to replace your old furnace and air conditioning system.
We have to also meet cold climate heat pump specifications to replace your old furnace and air conditioning system.
Every home is different, but let’s say this system is a total install cost of $22,000. Here is what the net cost could look like if all rebates were accepted by the representing organizations mentioned above:
| Install Price: | $22,000 |
| Xcel Cold Climate Rebate: | – $2,200 |
| Colorado State Mandated Discount: | – $499.95 |
| Federal IRA Heat Pump Tax Credit: | – $2,000 |
| City of Golden Rebate (Non-Income Qualifying) | – $1,200 |
| Net Cost: | $16,100.05 |
While it’s a bit of paperwork and some definitely correct design work up front (blower door test for air infiltration, energy modeling, right-sizing your heat pump and equipment, and more), it’s definitely worth it.
In the above example, that’s a full discount of nearly $6,000 with all rebates combined, or 27% off the cost of the system.
If you’re income-qualified using the AMI chart above, you would receive another $1,200 from Golden, with a net price of an even lower $14,900.05 net cost if using the example above.
An Example of a Mini Split Heat Pump Project in Golden With Rebates
For a mini split install example, let’s assume you need three mini split heads total for your home, which can be popular for a two-bedroom (one head in each bedroom and one in the main room).
We would have to again meet the cold climate heat pump specifications to replace your old furnace and air conditioning system.
Every home is different, but let’s say this system is a total install cost of $17,000. Here is what the net cost could look like if all rebates were accepted by the representing organizations mentioned above:
| Install Price: | $17,000 |
| Xcel Cold Climate Rebate: | – $2,200 |
| Colorado State Mandated Discount: | – $499.95 |
| Federal IRA Heat Pump Tax Credit: | – $2,000 |
| City of Golden Rebate (Non-Income Qualifying) – 3 heads x $300 each | – $900 |
| Net Cost: | $11,400.05 |
In the above example, that’s a full discount of nearly $5,600 with all rebates combined, or 33% off the cost of the system. Every home is different, so your individual cost or quote could be different.
If you’re income-qualified using the AMI chart above, you would receive another $900 from Golden, with a net price of an even lower $10,500.05 net cost if using the example above.
Again, it can be daunting, but we plan and take care of the above for our customers to make sure we can maximize everything. Feel free to contact us for questions or to inquire about your own new heat pump in Golden.
More Than Just Heat Pump Rebates in Golden!
The great news is that there are many more rebates available from the city itself. After speaking with Theresa (The City’s Sustainability Manager), she informed me that each homeowner can receive up to three rebates for any of these in the following chart:
| Equipment Type | 2024 Rebate | Income-Qualified Rebate |
| Air Source Heat Pump, cold climate rated, whole home | $1,200; minimum 3 tons for single-family. No minimum for multi-family. | $2,400 |
| Mini Split Air Source Heat pump, cold climate rated | $300, per indoor head, max 3 | $600, maximum 3 |
| Ground Source Heat pump, standard efficiency | $300 | $600 |
| Wall Insulation | $400 | $800 |
| Attic Air Sealing & Insulation | $500 | $1,000 |
| General Air Sealing | $200 | $400 |
| Electric Heat Pump Water Heater | $250 | $500 |
| Electrical Panel Upgrade | $500 | $1,000 |
| Smart Irrigation Controller | $100 | n/a |
| Rain Sensor | $50 | n/a |
| Bonus All-Electric Home (removal of natural gas meter) | $400 | $800 |
| Multi-Family Level 2 Electric Vehicle Charger | $1,000 | $2,000 |
| Single Family Home Electric Vehicle Charger, income-qualified only | $1,000 | n/a |
| Induction Cooktop | $300 | $600 |
| Evaporative Cooler | $250 | $250 |
| Heat Pump Clothes Dryer | $500 | $500 |
| Water Vapor Fireplace | $200 | $400 |
Benefits of Combining Sustainability Rebates
You can get up to a maximum of three rebates from Golden. This is great if you’re planning a whole-home electrification project, major renovation, netzero home project, or if you just want to combine a few things.
One great combo to include with heat pumps is to 1) get a BPI-certified energy audit ($200 rebate from Xcel Energy), 2) do some air sealing and insulation work, and 3) do the heat pump.
This is because a heat pump works much better when the home has a tighter building envelope, or just meaning that it’s sealed up tighter. Insulation helps control the heat penetration and slows down heat transfer year-round.
Both of these things help heat pumps better control your indoor air, leading to more comfort, and oftentimes even a smaller heat pump unit needed because it doesn’t have to work as hard, and your heat load needs might be lower.
Golden’s 3-rebate maximum rule fits very well with Xcel’s, which is also a 3-rebate requirement over two years in order to qualify for the Whole Home Efficiency 25% bonus from them.
This allows for the best chance of saving energy, maximizing comfort in the home, and maximizing all the rebates across the board.
We are BPI Certified (for energy audits) and on the Xcel Whole Home Efficiency Approved Contractors list as well, and can offer these services along with the heat pump design so everything is streamlined.
How Do You Apply For Golden Heat Pump Rebates?
Head on over to the City of Golden Sustainability Rebates page, and you can apply online there.
There are some rules to take note of however, and here they are:
- Building Permit Required: In many cases, for the energy rebates specifically, proof of a City of Golden building permit is required.
- Match Required: Most rebates require proof of a matching rebate from Xcel Energy. Qualifying proof can be either:
- Copy of an Xcel rebate check received
- An email from Xcel approving the project for an Xcel rebate (not acceptance of an application)
- Qualifying Equipment: Certain equipment, such as whole house heat pumps, have minimum sizing requirements in order to qualify for City of Golden rebates, which may differ from Xcel Energy requirements.
- Qualifying Contractor: Many Xcel Energy rebates require the use of an approved Xcel Energy contractor in order to receive the Xcel rebates.
- Rebate Limits: Limit of three (3) rebates per property, per calendar year.
Their website has a really good FAQ as well, and I suggest looking over that for more specifics.
Wrapping It Up
We hope we covered everything. As of the time of this writing, there are plenty of funds left for heat pumps in Golden, but there is limited amount available yearly.
To our understanding, the City will be asking for more funds going into 2025, but we need to use up the available funds for this year for that to happen as well.
If you have any other questions about rebates or incentives in Golden, or if you’re interested in exploring a new heat pump for your own home, you can contact us here.
Thanks so much!
